ACT NO.

3083

ACT NO. 3083 - AN ACT DEFINING THE CONDITIONS UNDER WHICH THE GOVERNMENT OF THE PHILIPPINE
ISLANDS MAY BE SUED

Section 1. Complaint against Government. Subject to the provisions of this Act, the Government of the
Philippine Islands hereby consents and submits to be sued upon any moneyed claim involving liability arising from
contract, expressed or implied, which could serve as a basis of civil action between private parties.

Sec. 2. A person desiring to avail himself of the privilege herein conferred must show that he has presented his
claim to the Insular Auditor 1 and that the latter did not decide the same within two months from the date of its
presentation.

Sec. 3. Venue. Original actions brought pursuant to the authority conferred in this Act shall be instituted in the
Court of First Instance of the City of Manila or of the province were the claimant resides, at the option of the latter,
upon which court exclusive original jurisdiction is hereby conferred to hear and determine such actions.

Sec. 4. Actions instituted as aforesaid shall be governed by the same rules of procedure, both original and
appellate, as if the litigants were private parties.

Sec. 5. When the Government of the Philippine Island is plaintiff in an action instituted in any court of original
jurisdiction, the defendant shall have the right to assert therein, by way of set-off or counterclaim in a similar
action between private parties.

Sec. 6. Process in actions brought against the Government of the Philippine Islands pursuant to the authority
granted in this Act shall be served upon the Attorney-General 2 whose duty it shall be to appear and make
defense, either himself or through delegates.

Sec. 7. Execution. No execution shall issue upon any judgment rendered by any court against the Government of
the Philippine Islands under the provisions of this Act; but a copy thereof duly certified by the clerk of the Court in
which judgment is rendered shall be transmitted by such clerk to the Governor-General, 3 within five days after the
same becomes final.

Sec. 8. Transmittal of Decision. The Governor-General, 4 at the commencement of each regular session of the
Legislature, 5 shall transmit to that body for appropriate action all decisions so received by him, and if said body
determine that payment should be made, it shall appropriate the sum which the Government has been sentenced
to pay, including the same in the appropriations for the ensuing year.

Sec. 9. This Act shall take effect on its approval.

Approved: March 16, 1923.

COMMONWEALTH ACT NO. 327

COMMONWEALTH ACT NO. 327 - AN ACT FIXING THE TIME WITHIN WHICH THE AUDITOR GENERAL SHALL
RENDER HIS DECISIONS AND PRESCRIBING THE MANNER OF APPEAL THEREFROM

Section 1. In all cases involving the settlement of accounts or claims, other than those of accountable officers, the
Auditor General shall act and decide the same within sixty days, exclusive of Sundays and holidays, after their
presentation. If said accounts or claims need reference to other persons, office or offices, or to a party
interested, the period aforesaid shall be counted from the time the last comment necessary to a proper decision
is received by him. With respect to the accounts of accountable officers, the Auditor General shall act on the
same within one hundred days after their submission, Sundays and holidays excepted.

In case of accounts or claims already submitted to but still pending decision by the Auditor General on or before
the approval of this Act, the periods provided in this section shall commence from the date of such approval.

Section2. The party aggrieved by the final decision of the Auditor General in the settlement of an account for
claim may, within thirty days from receipt of the decision, take an appeal in writing:

(a) To the President of the United States, pending the final and complete withdrawal of her sovereignty over the
Philippines, or

(b) To the President of the Philippines, or

(c) To the Supreme Court of the Philippines if the appellant is a private person or entity.

If there are more than one appellant, all appeals shall be taken to the same authority resorted to by the first
appellant.

From a decision adversely affecting the interests of the Government, the appeal may be taken by the proper
head of the department or in case of local governments by the head of the office or branch of the Government
immediately concerned.

The appeal shall specifically set forth the particular action of the Auditor General to which exception is taken with
the reasons and authorities relied on for reversing such decision.

Section3. This Act shall take effect upon its approval.

Approved: June 18. 1938.

PRESIDENTIAL DECREE No. 1807

PRESCRIBING THE PROCEDURE WHEREBY THE REPUBLIC OF THE PHILIPPINES MAY WAIVE SOVEREIGN
IMMUNITY FROM SUIT AND OTHER LEGAL PROCEEDING WITH RESPECT TO ITSELF OR ITS PROPERTY IN
CONNECTION WITH FOREIGN OBLIGATIONS CONTRACTED BY IT PURSUANT TO LAW

WHEREAS, in the pursuit of economic growth and development, it has become imperative for the Republic of the
Philippines to enter into contracts or transactions with international banking, financial and other foreign
enterprises;

WHEREAS, recognizing this need, existing legislation expressly authorize the Republic of the Philippines to contract
foreign obligations, including borrowings in foreign currency, and to guarantee foreign obligations of corporations
and other entities owned or controlled by the Government of the Philippines;

WHEREAS, circumstances in the international market may require that sovereign states entering into contracts or
transactions make express waivers of sovereign immunity in connection with such contracts or transactions;

WHEREAS, it is in the national interest that a procedure be prescribed with respect to the waiver of sovereign
immunity of the Republic of the Philippines in respect of international contracts or transactions entered into by it;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers
vested in me by the Constitution, do hereby order and decree:

Section 1. Procedure for, and Conditions of, Waiver of Sovereign Immunity. In instances where the law expressly
authorizes the Republic of the Philippines to contract or incur a foreign obligation, it may consent to be sued in
connection therewith. The President of the Philippines or his duly designated representative may, in behalf of the
Republic of the Philippines, contractually agree to waive any claim to sovereign immunity from suit or legal
proceedings and from set-off, attachment or executive with respect to its property, and to be sued in any
appropriate jurisdiction in regard to such foreign obligation.
For purposes of this decree, a foreign obligation means any direct, indirect, or contingent obligation or liability
capable of pecuniary estimation and payable in a currency other than Philippine currency.

Section 2. Validity of existing Waivers. Nothing in this Decree shall be construed to revoke or repeal any waiver of
sovereign immunity from suit or legal proceedings or from set-off, attachment or execution granted under or
pursuant to other provisions of law.

Section 3. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of January in the year of Our Lord, nineteen hundred and eighty-one.
Art. 2180 of the Civil Code

The obligation imposed by Article 2176 is demandable not only for one's own acts or omissions, but also for those
of persons for whom one is responsible.

The father and, in case of his death or incapacity, the mother, are responsible for the damages caused by the
minor children who live in their company.

Guardians are liable for damages caused by the minors or incapacitated persons who are under their authority and
live in their company.

The owners and managers of an establishment or enterprise are likewise responsible for damages caused by their
employees in the service of the branches in which the latter are employed or on the occasion of their functions.
Employers shall be liable for the damages caused by their employees and household helpers acting within the
scope of their assigned tasks, even though the former are not engaged in any business or industry.

The State is responsible in like manner when it acts through a special agent; but not when the damage has been
caused by the official to whom the task done properly pertains, in which case what is provided in Article 2176 shall
be applicable.

Lastly, teachers or heads of establishments of arts and trades shall be liable for damages caused by their pupils and
students or apprentices, so long as they remain in their custody.
The responsibility treated of in this article shall cease when the persons herein mentioned prove that they
observed all the diligence of a good father of a family to prevent damage. (1903a)